That was on top of income and business taxes, not instead of them which is the proposal at issue here.How does imposing a sales tax on a new home become "instead of" the income tax?
If I finance a new home for $200,000 + 30% tax = $260,000 then sell it 2 yrs later without collecting my tax paid how is that "instead of" my income tax exactly?
Lousbolts, today's homes contain a similar amount of tax and tax costs - and they're all recovered in the sale. Execpting distressed sales, only a stupid idiot would sell a house for less than he paid.
Why would you sell the house for less than $260,000? You wouldn't . You'd sell it for as much or more than you paid - just like today.
1. We are talking of yachts, not homes. 2. If a tax suddenly appears, it is a different case than if a tax is replaced by another. Not an apples to apples comparison. The premise of this thread is why the NRST is bad, but discussions of the NRST presume that it replaces the income tax. Instead, an example was cited in which a new sales tax was imposed, without any other tax relief.
If I finance a new home for $200,000 + 30% tax = $260,000 then sell it 2 yrs later without collecting my tax paid how is that "instead of" my income tax exactly?
One has nothing to do with the other. If the sales tax is in place, presumably you won't have to pay any income tax. Not because you sold a house, but because Congress, in enacting the NRST, revoked the income tax.